March 2011 Monthly Average Crude Oil Price

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The monthly average U.S.-dollar price of West Texas Intermediate crude oil shot higher in March, rising by $13.36 (14.9 percent) to $102.94 per barrel. That rise occurred in part because of the effects of a slightly weaker dollar, but despite a drop in consumption of 637,000 barrels per day (BPD) -- to 19.1 million BPD -- during January along with a continued rise in crude stocks during March.
 

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In fact, EconMatters analyst Dian Chu observed that storage tanks at Cushing, Oklahoma are nearing capacity, and imports have risen because there is nowhere else to go with the oil. Nonetheless, most commentators still say prices contain a $15 per barrel “fear premium” due to the Middle Eastern protests. Also, a few analysts are starting to talk about Brent crude moving up to $120-130 in the next quarter as summer demand gets ahead of OPEC’s ability to increase supplies.